M & B Engineering Ltd Q1 FY27 Earnings Analysis

- The company targets 20%-25% growth in both domestic and export markets under normal operating conditions (Page 9). - Volume growth planned: Phenix PEB volumes to increase from 72,000 tons to 90,000 tons; Proflex volumes from 17 lakh to 17.25 lakh square meters, reflecting about 20%-25% growth (Page 9). - Export volumes are expected to grow from 7,400 tons in FY26 to 10,000 tons in FY27, targeting up to 20% export share of total turnover (Pages 13, 9). - Order pipeline stands strong at around INR1,000-1,100 crores with inquiries across multiple sectors, supporting confidence in continued growth (Pages 8, 20). - The top-line growth target for the current fiscal is around 23%-25% due to a strong order book and robust demand (Page 7). - Employee strength and production workforce also expected to increase to support growth, including 200 additional production staff at Sanand (Page 22).

- FY27 top-line growth expected around 23%-25%, supported by strong order book and robust demand in pre-engineered buildings and roofing systems. (Page 5) - Export volumes targeting growth from 7,400 tons in FY26 to 10,000 tons in FY27, aiming for 20% export revenue share. (Pages 13, 19) - EBITDA margins impacted in FY26 (11.9%-12.5%) due to forex loss, steel price hike, and freight costs; margin guidance for FY27 withheld due to volatility but focus on disciplined execution remains. (Pages 5, 16) - Positive outlook on margin recovery and potential improvement as tariff reductions stabilize costs and cost pass-through possible on new orders. (Pages 6, 20) - Profit after tax grew 20% in FY26; management confident to sustain earnings growth driven by execution momentum and capacity expansions. (Pages 5, 22) - EPS expected to benefit from revenue growth and margin stabilization, though precise guidance not provided amid current uncertainties.

- FY26 capital expenditure was INR33 crores, focused on capacity augmentation and operational strengthening aligned with mid-term growth strategy. - Estimated capex for FY27 is around INR100 crores, indicating continued commitment to expanding capability and scale. - Adding approximately 20,000 metric tons of capacity at the Sanand facility, expected to be commissioned by Q2 FY27, increasing total capacity to 92,000 metric tons per annum. - Plans to begin expansion at the Cheyyar plant in Tamil Nadu, targeting operational status by Q1 or Q2 FY28. - These expansions are part of strategic efforts to strengthen production capacity and market presence, especially in domestic and export markets.

- There is no explicit mention of any new fundraising through debt or equity in the provided transcript. - The company has utilized 53% of its IPO proceeds (INR137.81 crores out of INR259.32 crores) as of March 31, 2026. - Long-term funds raised through the IPO have been used to pay creditors and support cash purchases of raw materials. - Management referred to IPO funds and General Corporate Purpose (GCP) funds utilized for working capital needs. - No new debt or equity issuance plans were indicated during the Q&A or closing remarks. - The company is focused on capex plans (~INR100 crores in FY27) funded from existing resources rather than new fundraising.

- Current unexecuted order book: INR 1,083 crores (Page 20) - Order inflow in Q4 FY26: INR 387 crores, down from INR 480 crores in Q3 (Page 20) - Bid pipeline: Approximately INR 1,000 - 1,100 crores, comprising a mix of large, medium, and small orders across sectors (Pages 7, 20) - Export order book: Around INR 280 crores (Page 13) - Export turnover target for next year: INR 275-300 crores with volumes expected to increase to 10,000 tons in FY27 (Pages 13, 20) - Order intake growth target: 20%-25% year-on-year across domestic and export markets under normal conditions (Page 13) - Domestic market shows strong capex and inquiry pipeline indicating continued order inflows (Page 7)